Oil inched down, but set for weekly gain

Crude oil price trending points

After securing gains eight straight days in a row, the US crude slightly faltered on Friday, the 11thof January, alongside Brent crude amid caution over global economy

Both US and Brent crude prices are eyeing the US inventory surge, as it reached a production of record 12 million barrel per day

In a near-term outlook, US crude seemed to be trading between $50-$50 per barrel, as it was forecasted by multiple analysts on 2018 year ending

US crude may breach its critical resistance level at $55.34 per barrel, later on February, as OPEC and Non-OPEC national’s agreed cut would be on full effect by that time.

Crude edged lower, but on track for weekly gain

On Friday, the 11thof January, the oil prices took a tumble, as it was plunged by 2 percent, plausibly resulted from the US inventory surge. However, both US and Brent crudes are on track to secure their weekly gain, as financial market straightened on the hope of US and China trade talk.

Tightened supply followed by OPEC led crude production cut, kept crude prices well support, however, concerns about global economy and a wobbling worry of decaying demand submerged the crude price on Friday, Jan. 11th.

While this report is being prepared, the US crude were down by 1 percent, residing at $51.72 a barrel, while the Brent Crude was being traded at $60.72 per barrel, down by 1.67 percent, GMT. 15.00, Jan. 11th, Friday.

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US crude daily price chart

Despite a moderate plunge on Friday’s Asia Pacific and European trading sessions, both Brent and US crudes had been on course for their second week of gains. In terms of weekly gain, the Brent crude rose 6 percent and the US crude secured an 8 percent gain.

Bottom Line

Although, oil took a hit today, both crude indexes appeared to be well-supported, as a number of critical factors had been pulling the oil price higher and a lack of Iranian oil export due to cracked up payment method was playing a pivotal role among them.

Since the US crude production surged significantly this month above 12 million barrel per day, in a near term outlook, US crude may trade in a tight range between $50 and $55 per barrel, the Brent crude’s key resistant level resides at $63.35 per barrel, it might also display a sideways movement between $59 to $64 per barrel.

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